Korea and Malaysia unite at the Shepherd CCS Summit 2024 for the carbon capture future: Unlocking Transboundary CCS to Decarbonize the Region

Corporate News

2024.06.10

Korea and Malaysia unite at the Shepherd CCS Summit 2024 for the carbon capture future: Unlocking Transboundary CCS to Decarbonize the Region

10 June 2024 - Korea and Malaysia have united to advance Carbon Capture and Storage (CCS) initiatives, fostering dialogue and collaboration among all stakeholders for a sustainable future in the CCS sector. CCS, which involves capturing emitted carbon dioxide (CO2) and storing it in stable permanent storage, is essential for decarbonizing the region and is a key element in achieving Nationally Determined Contributions (NDCs).

The 'Shepherd CCS Summit 2024,' held at THE SHILLA Seoul, Korea, today, brought together amongst others, global companies and government officials to shape the future of the carbon capture industry. The summit saw participation from over 60 organizations and more than 200 attendees, including industry professionals, policymakers, experts, and business stakeholders.

The summit commenced with opening speeches by Hong Namkoong, President and CEO of SAMSUNG E&A, and Datuk Adif Zulkifli, Executive Vice President & CEO Upstream of Petroliam Nasional Berhad (PETRONAS). Both emphasized the summit's significance, highlighting the collaboration between private and public sectors in cross-border CCS cooperation, providing a platform for developing constructive and practical solutions for the future.

The 'Shepherd CCS Summit 2024' featured a variety of programs, including keynote speeches, panel discussions, and government addresses. Keynote speakers from SAMSUNG E&A, Korea National Oil Corporation, PETRONAS, AspenTech and others introduced the global CCS market, prospects, and actual project cases.

Panel discussions focused on the role and challenges of CCS in decarbonizing domestic industries, technological trends, and the key contexts of CCS policies and roadmaps for both Korea and Malaysia. Government officials from both countries emphasized the necessity of close cooperation and communication between governments and companies to realize cross-border CCS projects.

A highlight of the summit was the presentation of the Shepherd CCS project, a pioneering global initiative. This cross-border project, jointly developed by Korean and international companies, aims to capture CO2 from Korean industrial regions and transport it to Malaysia for permanent storage. With an abundance of potential storage capacity in Malaysia, CCS is a technology lever that will propel and position Malaysia as the preferred CCS hub in the Asia Pacific region.

Further presentations included the development status of CO2 hub clusters, CO2 storage development in Sarawak, Malaysia, the global CCS market outlook, the development of the southeastern CCS Cluster in conjunction with Shepherd Ulsan Hub Terminal, and digital solutions for accelerating CCS.

The 'Shepherd CCS Summit 2024' provided a comprehensive platform for discussing measures for the success and development of CCS, and underscored CCS as a critical technology for Korea, where manufacturing dominates and some industries face challenges in reducing carbon emissions. Reflecting this, the Korean government has set an ambitious annual CO2 reduction goal of 4.8 million tons through CCS by 2030.

The Ministry of Trade, Industry & Energy - Republic of Korea(MOTIE)'s Director General, Yeon Woo Choi stated: "The two countries recognized the importance of a cross-border CCS arrangement/agreement between Korea and Malaysia and confirmed that the two governments will discuss such matters taking into consideration of relevant regulatory frameworks, international laws, conventions, and treaties."

During the summit, Dato' Luqman Ahmad, the Deputy Secretary General (Macro) from the Ministry of Economy Malaysia, highlighted that: "Malaysia recognizes the need to establish bilateral agreements to position Malaysia as a regional CCS hub and is looking forward to joining forces with the Ministry of Trade, Industry, and Energy from the Republic of Korea, moving us closer towards a lower-carbon future. The development of the CCS sector in Malaysia will help unlock various socioeconomic benefits for Malaysia, contributing to economic growth, the creation of skilled and high-value job opportunities, and the advancement of new technology and innovation. As we move ahead, I trust that all of us will continue to take bold steps, forge collaborations, and harness our collective strength in the pursuit of a more resilient and sustainable future for the generations to come."

Hong Namkoong, President and CEO of SAMSUNG E&A said: "The 'Shepherd CCS Summit 2024'

is meaningful for present and future generations for a better tomorrow. It also underscores the crucial importance of this joint endeavor as we build a brighter future together. CCS is a crucial stepping stone towards net zero. Coming together and building a sustainable, low-carbon future is imperative globally. "

The 'Shepherd CCS Summit 2024' marks a significant milestone in international cooperation on carbon capture and storage, setting the stage for continued collaboration between Korea, Malaysia, and the global community. As CCS technology continues to evolve and mature, the commitments and partnerships forged at this summit will be crucial in meeting climate goals and ensuring a sustainable, low-carbon future for the region and beyond.

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